Blog Post How Long Does It Take for a Broken Lease to Appear on Your Credit

How Long Does It Take for a Broken Lease to Appear on Your Credit
Mar

4

2017

How Long Does It Take for a Broken Lease to Appear on Your Credit

Broken lease may or may not appear on your credit.  It depends if your landlord reports you for unpaid rent.  If you broke a lease and didn’t pay a required penalty which was part of the leasing agreement, then it can be reported too.  When a landlord fails to collect unpaid rent from you, he or she will report debt to a collections agency. All these collections calls will be quite annoying, especially if you decide to ignore then and not work out some kind of payment arrangement for remaining balance.
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Usually, collections agency will try to call you for a couple of months before they give up on you and report a defaulted debt to a credit bureau. Therefore, it may take a couple of months for a broken lease to appear on your credit.
The worst is not how long it takes for a broken lease to appear on your credit, but rather, how longs it really stays on your credit report. If a judgement results from a civil lawsuit for break of leasing agreement, it may stay for up to 7 years on your credit report.  
Breaking an apartment lease is not a joke. If it ever shows up on your credit report, it will instantly cause a 50-70 point drop in your credit score.  This is a significant drop, especially if you were somewhere in the low 600’s already.  Dropping below 600 will present serious challenges for you to rent another property, get approved for a car loan or even purchase a house.
If you ever want to know if your broken lease was ever reported to a credit bureau, we recommend you to get a free copy of your credit report.
   

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